Buying property in Melbourne: a step-by-step guide

1. Work out your budget

Start with what a lender will approve, then add the costs on top of the purchase price: land transfer duty (often called stamp duty), conveyancing or legal fees, building and pest inspections, loan costs, insurance and moving costs.

The State Revenue Office (SRO) has a land transfer duty calculator, and explains the exemptions and concessions available to some first home buyers, pensioners and others. Foreign purchasers may pay additional duty (see the investing guide).

2. Research suburbs and prices

Compare recent sales of similar properties in the suburbs you like, and visit at different times of day. Think about transport, schools, shops, future development and, for apartments, the owners corporation.

In Victoria, agents selling residential property must provide a Property Price Statement (it replaced the Statement of Information from 1 October 2026). It shows an indicative selling price, the most comparable sales and the suburb median, and it must be easy to find next to the price in online ads. Under the new rules agents also publish the seller's reserve price at least 7 days before an auction or fixed-date sale, and the final sale price once a sale is unconditional. Underquoting is against the law, so if a price looks unrealistic, ask the agent how they arrived at it.

3. Inspect and do your due diligence

Before you buy, check anything that may affect the property or impose obligations on you, such as zoning and planning overlays, easements, owners corporation rules and fees, building permits and the condition of the building. Consumer Affairs Victoria publishes a due diligence checklist for home buyers, which NDL Realty also links from its website.

Get an independent building and pest inspection, especially for older homes and houses.

4. Read the Section 32 vendor statement

The seller must give you a vendor statement (the "Section 32") before you sign the contract. It covers title, any mortgages, easements and covenants, zoning, outgoings such as council rates, and owners corporation details. Have a lawyer or licensed conveyancer review the contract and Section 32 before you sign or bid.

5. Make an offer, or bid at auction

Private sale: you make a written offer through the agent and negotiate. In Victoria a cooling-off period of three business days generally applies to private sales of residential property, but withdrawing still costs you a small amount set by law.

Auction: there is no cooling-off period if you buy at auction, or in the three clear business days before or after a publicly advertised auction. Have your finance, inspections and contract review done before auction day.

6. Settlement and the pre-settlement inspection

Between signing and settlement your lender, conveyancer and the seller's representatives complete the paperwork and the balance is paid. You'll usually get a final inspection shortly before settlement to check the property is in the condition you agreed to buy it in.

For new and off-the-plan homes, a pre-settlement inspection is a vital step before you settle. NDL Realty offers pre-settlement inspections and specialist off-the-plan sales through NDL Projects.

Official sources

• Consumer Affairs Victoria – Buying and selling property
• Consumer Affairs Victoria – Due diligence checklist
• Consumer Affairs Victoria – Understanding property prices and underquoting
• State Revenue Office Victoria – Land transfer duty
• NDL Realty – Properties for sale

This guide is general information, not legal, tax or financial advice. Laws, taxes and government schemes change; check the official sources above and get professional advice for your situation. Melbourne Realtors is a business name of NDL Realty.